Dogecoin bearish fakeout confirms a move towards $0.25
- Dogecoin price may trigger a bear trap if it closes above the daily Tenkan-Sen
- Avoidance of any hidden or regular bearish divergence is critical in supporting a sustained bullish drive higher.
- The most recent swing lows must hold to prevent the resumption of a broader corrective move.
Dogecoin price jumps as much as 6.5% during the day, moving above the daily Tenkan-Sen. It had been over a week since the current close touched the Tenkan-Sen, so returning to that level was not unexpected.
Dogecoin price must close the daily candlestick at or above $0.2121
Dogecoin price could very quickly push towards $0.25 if there is a clear close above the Tenkan-Sen. There is little stopping Dogecoin from pushing higher between the Tenkan-Sen and 38.2% Fiboancci retracement at $0.2324. The oscillators support further upside potential if buyers can rally Dogecoin above $0.2121.
The Relative Strength Index has shifted into bear market territory and shows support found against the first oversold condition at 30. The Composite Index has a bullish crossover of its fast and slow-moving averages. However, If Dogecoin price fails to close above the Tenkan-Sen, then hidden bearish divergence will develop – a warning that downside pressure is likely.
DOGE/USDT Daily Ichimoku Chart
Traders should also pay attention to the location of the Chikou Span, which is currently below the Cloud.
While the upside momentum remains strong during the intraday session, traders should be reminded that weekends are notoriously volatile. The most recent swing lows at $0.194 are not far away and could easily be broken. A breakdown below $0.1940 would likely create a violent move towards the $0.1211 value area.
Like this article? Help us with some feedback by answering this survey:
Author
Jonathan Morgan
Independent Analyst
Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.
